Assets worth ₹27.83 crore to be seized for FEMA violations

ED to seize assets worth ₹27.83 crore for FEMA violations involving illegal foreign property acquisitions in Dubai.

The Enforcement Directorate (ED) has secured orders to seize eight immovable properties worth ₹27.83 crore for violations of the Foreign Exchange Management Act (FEMA). The ED discovered, with the aid of intelligence inputs and after conducting searches, that certain high-net-worth individuals had made investments overseas, particularly in Dubai, using funds sent through “hawala” channels.

“Searches (in Delhi) resulted in the recovery of incriminating documents and information relating to undisclosed foreign assets acquired in contravention of FEMA provisions,” the ED said on Wednesday.

“Kapil Aggarwal and Ms. Sangeeta Aggarwal, both resident in India, jointly acquired and held 10 immovable properties in Dubai for a total consideration of AED 1,94,03,975, equivalent to about ₹34.14 crore without any corresponding outward remittance from India through authorised banking channels,” the agency alleged.

“They also failed to furnish any documentary evidence regarding the source of overseas funds used for acquisition of the said properties, as well as any approval from the Reserve Bank of India (RBI) for acquisition of foreign assets abroad,” it alleged, adding that orders to seize five immovable properties in India (worth about ₹17.83 crore) have been issued.

“Similarly, investigation revealed that S. Bhattacharya, a person resident in India, had acquired two immovable properties valued at AED 40,07,319, equivalent to about ₹.9.83 crore, without any corresponding outward remittance from India through authorised banking channels,” alleged the ED.

Accordingly, orders for the seizure of three immovable assets valued at nearly ₹10 crore have been issued. The action was taken under Section 37A of FEMA.